Kun-Mediátor travel agency defrauds investors of HUF 5-20 billion

Another Hungarian company defrauds investors of billions of forints. This time it is Kun-Mediátor Kft., a travel agency located in Karcag (180 miles east of Budapest).

A lawyer representing clients of the company says damages may reach anywhere between HUF 5-20 billion depending on the number of people who file criminal complaints against the company. Apparently, the company was engaged in performing unlawful financial activities.

Many of the company’s clients say they had received a piece of paper from Kun-Mediátor Kft. outlining how much interest they would earn if they deposited funds with the company, says István Dobrossy, an attorney representing the victims.

Police announced last Tuesday that they were opening an investigation into the Kun-Mediátor Kft. on suspicion of embezzlement because several clients reported that they had not been able to withdraw their investments from the company.

Kun-Mediátor Kft.’s primary business activity was that of a travel agency but it also dabbled in financial activities for which it did not have the proper licenses. The National Bank of Hungary has also launched an investigation into the company for carrying out unlawful financial activities.

News of the scandal broke last week after the Jász-Nagykun-Szolnok County magistrate’s office announced that it had formally opened an investigation into alleged embezzlement and fraud. The following day Minister for National Economy Mihaly Varga announced at a press conference that he had ordered the director general of the Hungarian Trade Permitting Authority to open an investigation into the company’s activities.